Investing in Green Energy: A Great Way to Lose Your Money

f436why not just burn dollar bills Investing in Green Energy: A Great Way to Lose Your Money

Last year, the environmentalist lobbying group,
Greenpeace, issued its “The
Silent Energy Revolution” study which crowed:

The bright future for renewable energy is already underway. This
new analysis of the global power plant market shows that since the
late 1990s, wind and solar installations grew faster than any other
power plant technology across the world….

To get some idea of just how well renewable energy “revolution”
is doing in the marketplace let’s take a look at how cleantech
stocks have been performing on average. Over at the Washington
Times, climate catastrophe skeptic Steve Goreham, executive
director of the Climate Science Coalition of America, asks,
“So,
how is your green energy stock doing?” His answer is not at all
well. His conclusion is based on the 7-year trends identified by
the Renixx Index of the 30 biggest renewable energy companies.
Since Goreham doesn’t want anyone reprinting his article, I’ve put
a couple of illuminating stock trends charts below. The first one
is the Renixx Index
for the past five years – dropping 90 percent in value since
2009.

The next chart shows the price trend in the the
First Trust ISE Global Wind Energy Fund:

And see also the popular WilderHill Clean Energy Index
below. It has fallen about 90 percent from its high in 2007:

The Greenpeace report favorably cites another that noted:

“Policy and regulation continue to be central to ensuring the
long term stability of projects from a revenue and operation
perspective. It is imperative that both regulation and policy be
clear, of a long duration, and legally based in order to deliver
growing volumes of private funds into the [renewable energy]
sector.”

As Greenpeace makes clear “policy and regulation” nets out to
subsidies for wind and solar and tightening restrictions on all
other energy sources. But surely any reasonable definition of
“sustainabilty” should include “financial sustainabilty.” If an
activity requires
government subsidies that means it is not sustainabie.

Read the article:  

Investing in Green Energy: A Great Way to Lose Your Money

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